Which one of the following statements about futures contracts is correct?

Which one of the following statements about futures contracts is correct?

I. Futures contracts are subject to the same risks as the underlying instruments.

II. Futures contracts have additional interest rate risk die to the future delivery date.

III. Futures contracts traded in a clearinghouse system are exposed to credit risk with numerous counterparties.
A . I
B . I, III
C . II, III
D . I, II, III

View Answer

Answer: A